and why there are risk in the stock market?

Answer 1

stock prices can rise and fall anytime.

so you risk losing money with hopes it will go up
yet it may not go up but go down
and stay down.

people lose money this way and hold on to stocksm
thinking they will go up again someday
yet have lost their money period as some stocks never
go back up in value.

What is hot one day is cold the next.

if people knew what the market could or would do
day by day - everyone would be winners.

people only guess and use trends and statistics
to have a so called better idea of what it should do.

so research stocks before you invest

big stable companies have better returns long term

where as smaller ones might offer high returns
over shorter time span.

all depends on what level of investing you want to do

Answer 2

There are many factors that create risk in the stock market. You are basically buying a stock in anticipation of the things that company will do in the future. If the company performs poorly, the stock price will go down. Outside factors like inflation, employment rates or political factors like war can also drive the value of a stock up or down.

There is always risk when buying something not based on today but what it will be like tomorrow.

Answer 3

There is risk in the stock market because the future value of a company is uncertain. In addition, demand for stock is also uncertain.

The value of a company's stock could fall because something bad happened at the company. It also could fall because someone who owns the stock needs cash and sells a large block of the stock at a time when there aren't many buyers in the market.

Answer 4

there are rick to keeping money under your mattress. less rick today to keep money in the bank. options you make money or loose all. what do you want? inflation / deflation. changing demographics. profits-up / down.